Market turmoil poses new challenge to Fed's rate plans

Traders signal offers in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange on August 24, 2015, in IllinoisThe turmoil sweeping through global markets has raised a new challenge to the Federal Reserve’s plan to begin raising US interest rates. Widely expected just weeks ago to undertake the first rate hike in nine years in September, the Fed now must weigh the risk of pouring more oil on the flames in tumbling equity and commodities markets. “With the plunge in global markets, I think it’s unlikely that the Fed will raise rates in September — perhaps about a 20 percent chance,” said Stephen Oliner, an economist with the Washington think-tank American Enterprise Institute.

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